Tuesday, January 6, 2009
Gas is really cheap! It's been going down almost daily. But I saw something different today. Today gas went up a nickel. That's not much but it is the beginning of a price reversal. Crude oil is up over $13.00 from it's lowest point. It now sits at $48 and will edge up higher the closer we get to Spring.
These higher prices are also reflected in energy stocks such as drilling companies like Pioneer Drilling, Noble Corporation, and TransOcean. Also, oil service companies such as Halliburton, Schlumberger, and Weatherford International. Some of the smaller companies like Kwik Silver have had their stock rice by as much as 60 percent over the past week. These stocks will dip, level out and then rise again as oil prices once again increase. Look at their charts, they are still pretty much at the bottom of the curve and have a lot of room for growth.
The bail out of the auto makers and builders will also create growth in the market. I believe that the Dow Jones Industrial average will rise from 9,000 to 10,000 by Spring. This is partly because the market had been oversold because of panic and because investors are slowly regaining confidence in the market and are coming back to it. right now is the best window to buy stocks.